This week Ideal Mortgage Advisers will be providing some basic guidance when looking at getting a mortgage.
What documents should you have?
Below is a list of common documents that lenders may require and therefore would be prudent to start to gather: • 3 months/13 weeks’ pay slips if employed • 3 years tax calculations and matching tax year overviews if self-employed • 3 months bank statements for all current accounts held • Proof of ID – passport or driving licence • Proof of address – utility bill, council tax bill or mortgage statement • Proof of deposit - savings statement
How do lenders assess Affordability?
Lenders will assess your circumstances differently as they all have different affordability calculators. Factors such as age, number of dependants, size of deposit and credit commitments may all have an impact. Similarly, some lenders may include more of your income than others, some may take 100% of overtime where others only use 50% for example.
If you have benefits for children such as Tax Credits this might also be accepted but the costs of child care will also be taken into account
The lenders will have an affordability calculator that does their work for them. Although possible, it is difficult to get beyond 5 x your annual total income
Will the type of Property matter?
Whilst most houses and bungalows are no issue for mortgage purposes, some properties aren’t made from the standard brick wall and tile roof model and are worth checking that the mortgage company will be happy with its method of construction. In England, Wales and Northern Ireland flats are typically leasehold rather than freehold like the majority of houses. That being said, you can find some houses which are leasehold. The length remaining on the lease is important for example, some lenders may require that the lease has at least 85 years remaining when you apply, whereas others could be as low as 55 years. Similarly, it’s worth checking with the lender before applying if the flat is located above or adjacent to a commercial premises such as shops, bars, restaurants or take-aways, or the block of flats has more than 3 storeys or no lift.
Always best to ask
There a lot of variables to consider when buying a home and obtaining a mortgage. Ideal Mortgage Advisers can offer friendly and professional advice to help navigate the sea of mortgage lenders. Feel free to drop us an email - info@imabristol.co.uk
Your home may be repossessed if you do not keep up repayments on your mortgage.